The Building Child Care for a Better Future Act would provide $20 billion in annual federal funding to states, territories, and tribal organizations starting in fiscal year 2026 to expand child care access, with an additional $5 billion annually dedicated to workforce compensation and support in underserved areas. States would use these funds—which require no local matching dollars and must supplement rather than replace existing spending—to support provider training and wages, improve facilities, and prioritize services for vulnerable populations including low-income families, children with disabilities, dual language learners, and those in rural areas. The funding includes automatic inflation adjustments in future years, and states must maintain their baseline child care spending levels to qualify. Recipients would be required to report on outcomes after one year and three years, while the federal government would conduct comprehensive evaluations every five years to assess improvements in child care supply, quality, and access, with results made public and reported to Congress.
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